Missouri Merger Agreements
A merger is when two separate companies decide to combined its companies into a completely new company. There are five main types of corporate mergers:
(1) Vertical Merger: two separate companies that make specific parts for a finished good combine;
(2) Horizontal Merger: two companies are in the same industry and try to consolidate its resources into one new company;
(3) Conglomerate: two companies, in completely different industries and unrelated businesses join forces;
(4) Market Extension: both companies sell the same products but in different, unrelated markets; and
(5) Product Extension: both companies have unrelated products that, when combined together, will add value to each other businesses.
The merger is, in a scene, a marriage between two companies. If you’re considering a merger, be prepared for an abundance of time consuming negotiations. Hiring an experienced attorney who not only understands the legal process, but has also been in your situation as a business owner, will make the process and transition as smooth as possible.
Contact Howard Law at (314) 325-9868 for more information on if a merger is best for your business and how to get the process started.